|Analysis||As the dollar rebounds therefore reduces the appeal of oil as an investment since commodities are priced in dollars therefore makes it more expensive for investors which causes oil prices to decline. Also as energy industries are resuming their offshore operations that were interrupted by the Tropical Storm Ida, calmed fears in the markets that were set towards oil supplies being disrupted therefore held back prices from rising. The contract shed $0.38 closing at $79.05 while recording a high of $80.51 per barrel and a low of $77.89 per barrel. |
The U.S. stock market fluctuated as the session ended yesterday after they had reached the highest level in more than a year at opening. Turning to oil shares we see that Exxon Mobil shed 0.24 points or 0.32% to $72.61 as Chevron Corp. gained 0.68 points or 0.87% to $78.34 while ConocoPhillips also inclined 073 points or 1.38% to $53.58.
Today, the U.S. markets are closed as a result of the Bank Holiday therefore the EIA report, which is a report about U.S. oil inventories, will not be released today and is delayed until tomorrow. Oil prices today are changing slightly yet are supported from China's data which showed that industrial production and retail sales beat expectations, China is second biggest oil consumer in the world, following the U.S. economy. The markets today opened at $78.88 while recording a high of $79.31 per barrel and a low of $78.60 per barrel.
From our point of view, prices are to continue their plummet on the long run as a result of the ongoing global recession that is weighing heavily on oil demand therefore keeping prices from rising, yet we might see prices in the short term spike temporarily if economic data from economies was upbeat while investors enter markets looking for potential in profits.